Are New Jersey residents overly optimistic about homeownership this year?
TRENTON — Fifty-nine million American adults are considering buying a new home this year, according to a new Bankrate.com report. However, just because someone wants to buy a home doesn’t mean they should.
Bankrate.com Senior Mortgage Analyst Holden Lewis said, “I really think homeownership is something you should only tackle if you have a burning need to own a home.”
The National Association of Realtors and the U.S. Census Bureau have reported that the total amount of existing and new home sales in 2016 sits around 6 million. The NAR also reported that the total housing inventory ended in 2016 with the lowest level since it began tracking the supply.
According to New Jersey real estate analyst Jeffrey Otteau, the amount of New Jersey homes on the market has dropped from 63,000 in 2008 to 39,000 homes so far this year.
The bankrate.com report states the groups with the highest likelihood of purchasing a home in 2017 are older Millennials, Gen-Xers, and minorities. Roughly two in five minorities report the likelihood of buying a house in 2017, that's double the percentage of white Americans who responded the same way.
Older Millennials aged 27-36 and Gen Xers aged 37-52 are the generations most likely to purchase a house this year. Twenty percent of both age groups indicated they are very or somewhat likely to purchase a home in 2017.
However, financial expenditures may hold potential homeowners back from taking the plunge. In fact, over 80 percent of homeowners said their mortgage payment is preventing them from saving more money. More than a third of mortgage holders reported that their monthly payment has a major impact on their ability to save.